ITO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,sEcTroN 3, suB-sEcTIoN (Dl

Govenrment oflndia

Ministry of Corporate Affairs

New Delhi, dated the 29d August,20l4

Notification

G.S.R. _(E).- In exercise of the powers conferred by sub-section (l) of section 46:- of theCompanies Act, 2013 (18 of 2013), the Central Govemment hereby makes the followingamendments further to amend schedule II ofthe said Act with effect from the date ofpubricationofthis notification in the Official Gazette, namely:-

l. In Schedule II ofthe Companies Act,20l3,------

(a) in Pan 'A', in paragraph 3, for sub-paragraph (i), the following sub-paragraph shall besubstituted, namely:-

"(i) The useful life ofan asset shall not ondinarily be different from the useful life specifiedin Part C and the residual value ofan asset shall not be more than five per cent. ofthe original

cost ofthe asset:

Provided that where a company adopts a useful life dillerent frorn what is specified inPart C or uses a residual value different from the limit specified above, the financialstatements shall disclose such dillerence and provide justification in this behalf dulysupported by technical advice";

(b) aner Parl 'C', under the heading Nores, --

(i) for paragraph 4 the following paragraph shall be substituted namely:-

w

"4(a) Useful life specified in part c of the schedule is for whole of the asset and whrecost ofa pad ofthe asset is significant to total cost of the a.sset and useful life ofthat partis differcnt ftom the useful life of the remaining asset, useful life of that significant partshall be determined separately.

(b) The requirement under sub-paragraph (a) shall be voluntary in respect ofthe financialyear commencing on or after the 1si April, 2014 and mandatory for financial statements inrespect of financial years commencing on or after the I sl Aplil, 2015."

(c) in paragraph 7, in sub-paragraph (b) for the words ,,shall be recognized,,, thewords "may be recognized" shatt be substituted.

File Number I 7/602012-CL-V

re-"I""p1[$,'JroJoint Secretary to the Govemment of India

Note.- Schedule- U ofthe Companies Ac! 2013 came into force with effect fiom the ln April, 2014 andw^as amended (with effect fiom l, April, 2014) vide notification number SO 237(E), dared the 31. March,2014.